§ 5009. Measure of damages

359 words·~2 min read·/usc/title-12/section-5009

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(a)Liability

(1)In general Except as provided in section 5005 of this title, any person who, in connection with a substitute check, breaches any warranty under this chapter or fails to comply with any requirement imposed by, or regulation prescribed pursuant to, this chapter with respect to any other person shall be liable to such person in an amount equal to the sum of—

(A)the lesser of—

(i)the amount of the loss suffered by the other person as a result of the breach or failure; or

(ii)the amount of the substitute check; and

(B)interest and expenses (including costs and reasonable attorney’s fees and other expenses of representation) related to the substitute check.

(2)Offset of recredits The amount of damages any person receives under paragraph (1), if any, shall be reduced by the amount, if any, that the claimant receives and retains as a recredit under section 5006 or 5007 of this title.

(b)Comparative negligence

(1)In general If a person incurs damages that resulted in whole or in part from the negligence or failure of that person to act in good faith, then the amount of any liability due to that person under subsection

(a)shall be reduced in proportion to the amount of negligence or bad faith attributable to that person.

(2)Rule of construction Nothing in this subsection reduces the rights of a consumer or any other person under the Uniform Commercial Code or other applicable provision of Federal or State law.

(Pub. L. 108–100, § 10, Oct. 28, 2003, 117 Stat. 1188.)

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Cited by 2 sections

statute-compilations

Sec. 10
MEASURE OF DAMAGES

statutes-at-large

Public Law 108–100
To facilitate check truncation by authorizing substitute checks, to foster innovation in the check collection system without mandating receipt of checks in electronic form, and to improve the overall efficiency of the Nation’s payments system, and for other purposes

Traces to 2 documents

U.S. Code

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Pub. L. 108–100, § 10
117 Stat. 1188
Pub. L. 108–100
117 Stat. 1177
section 20 of Pub. L. 108–100

Citation graph

cites case law

§ 5009

Measure of damages

Stat. Comp.×1

Stat.×1

U.S.C.§ 5005

U.S.C.§ 5001

Pub. L.Pub. L. 108–100, § 10

Stat.117 Stat. 1188

Pub. L.Pub. L. 108–100

Stat.117 Stat. 1177

Pub. L.section 20 of Pub. L. 108–100

Cites 7Cited by 2 across 2 sources